Maroc - STOREYS.COM - A La Une - 06/Aug 18:59

Westbank Sells The Pendrell In Vancouver To CAPREIT For $137M

On Thursday, the Canadian Apartment Properties Real Estate Investment Trust (CAPREIT) announced that it had completed a series of six acquisitions in Q2 2024, for a total of $387.4M. The most expensive of those six purchases was for The Pendrell, which CAPREIT says it acquired for $137M, while assuming the existing $64.1M mortgage that has an interest rate of 3.1% per annum and an eight-year term to maturity. The $137M price tag is higher than the BC Assessment valuation of $112,423,000.CAPREIT did not identify the vendor, but The Pendrell is located at 1770 Pendrell Street — 1754 Pendrell Street, legally — and was developed by Westbank, who legally owned the property under 1700 Pendrell Property Inc. and 1700 Pendrell Holdings Inc. The Pendrell is a 21-storey rental building with 173 units that Westbank completed in 2019.For Westbank, this is the third sale it has been involved in this year, after it sold significant amounts of its ownership interest in the Deloitte Summit office building located at 400 W Georgia Street in Vancouver and the 19 Duncan mixed-use tower located at 19 Duncan Street in Toronto to Allied Properties REIT in Q1. Following the sale, which completed in April, Westbank now holds a 10% ownership interest in Deloitte Summit and a 5% interest in 19 Duncan. Allied Properties REIT made their purchases by converting portions of a loan it provided Westbank into equity, which significantly reduced Westbank's debt to Allied Properties REIT, a long-time partner on numerous projects. Prior to that sale, Westbank and Allied also restructured their ownership stakes in the TELUS Sky mixed-use complex in Calgary, with the two partners selling their ownership interest in the commercial component of the project to TELUS and acquiring TELUS's portion of the residential component.CAPREITAside from The Pendrell, CAPREIT also acquired Axir, a five-storey wood-frame rental building located at 2950 Lonsdale Avenue in North Vancouver that houses 64 units. CAPREIT says it acquired the property, unencumbered, for $42.2M, again above the BC Assessment valuation of $36,293,000. Again, CAPREIT did not identify the vendor, but Axir was developed and owned by Cascadia Green Development, which was founded by Farzad Mazarei, is based in North Vancouver, and owned Axir through 1200272 BC Ltd. Axir, located at 2950 Lonsdale Avenue in North Vancouver.(CAPREIT)Outside of British Columbia, the largest of CAPREIT's remaining acquisitions was that of The View, a 24-storey rental tower located at 9922 111 Street in Edmonton. CAPREIT says it acquired the property for $79.3M while assuming the existing $68.6M mortgage, which carries interest at 3.6% per annum and has a nine-year term to maturity.The View was previously owned by Westrich Pacific and the deal was brokered by Edmonton-based Institutional Property Advisors, a division of Marcus & Millichap. Out east in Ontario, where the company is based, CAPREIT also acquired Nuovo, a 20-storey rental tower with 144 units located at 518 Rochester Street in Ottawa that completed construction in 2019. CAPREIT says it acquired Nuovo for $78.5M while assuming the $10.4M mortgage, which carries interest at 2.1% per annum and has a remaining term of two and a half years. Nuovo was developed by Domicile Developments.Also in Ottawa, CAPREIT acquired the 54-unit Hillview Apartments located at 525, 545, and 555 Recolte Private. CAPREIT acquired the property for $21.0M while assuming a $15.9M mortgage carrying interest at 4.4% per annum and four and a half years to maturity.The sixth and final acquisition was for Grafton Park, a 68-unit rental property located at 1537 Brunswick Street in Halifax. CAPREIT acquired Grafton Park for $29.4M while assuming a mortgage with $14.3M remaining, which CAPREIT says it has since repaid in full. Aside from the six acquisitions, CAPREIT simultaneously announced three sales. Those included the Parkwood Estates located at 8350 11th Avenue in Burnaby and Brookside Gardens located at 20834 Dewdney Trunk Road in Maple Ridge, both of which were sold in transactions facilitated by BC's Rental Protection Fund, which has yet to announce the transactions.The third and final disposition was regarding the 138-unit South Garden rental building in Toronto. According to CAPREIT, the three dispositions amounted to $89.3M in gross proceeds.